Avatar Company Uses the Direct Method to Prepare Its Statement

question 60

Essay

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following financial statement information for the year 2014:
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Please prepare the operating activities section of the statement of cash flows, using the direct method. Please use the following format:
$$\begin{array} { | l | l | l | } \hline \text { Operating activities: } &\quad\quad &\quad\quad \\\hline \text { Receipts } & & \\\hline \text { Collections from customers } & & \\\hline \text { Interest received } & & \\\hline \text { Total cash receipts } & & \\\hline \text { Payments } & & \\\hline \text { To suppliers } & & \\\hline \text { To employees } & & \\\hline \text { For interest } & & \\\hline \text { For income tax } & & \\\hline \text { Total cash payments } & & \\\hline \text { Net cash from operating activities } & \\\hline\end{array}$$

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Definitions:

Appreciative Inquiry

An approach to organization change that focuses on what is positive by asking participants to share their experiences and successes, examine the challenges, and explore what is working well.

Organization Change

The process through which a company or organization undergoes a transition to achieve a desired outcome, often involving restructuring, strategy transformation, or cultural change.

Planned Change

An intended, purposive attempt to make something different.

Aerosols

Tiny particles or droplets in the air, which can be natural or man-made, and may include pollutants, viruses, or medication for inhalation therapy.